Greece to get second tranche of euro aid package

Greece is set to receive the second instalment of a rescue loan provided by the EU and IMF following the country's progress in cutting its deficit.

The debt-laden country will receive a second tranche of 9bn euros next month after the European Commission said its decisive cost-cutting programme warranted an extension of the aid package. Greece's deficit has now fallen 46% in the first half of the year following the Government's strict austerity drive which led to rioting and social unrest in Athens. But the stringent cuts have also put a brake on economic growth, with the Greek economy contracting 1.5% in the second quarter. Despite progress made in tackling its deficit, the EC said the country faces ongoing challenges such as...